Despite AMFI’s “Mutual Fund Sahi Hai” campaign and SEBI’s reforms, ECS/NACH return charges (SIP bounce charges) remain a big hurdle for investors.
When an SIP fails due to insufficient balance, banks levy penalties that vary widely — SBI charges ₹250 per bounce, while ICICI Bank charges ₹500 + GST (₹590).
For example, if an ICICI Bank customer has four SIPs of ₹5,000 each and all bounce, the penalty is ₹2,360, which is 23% of the SIP value. In smaller SIPs, penalties can even exceed the investment amount, making bounce charges a serious burden for investors.
